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If the new page layout is not working for you, please Contact Me and let me know what device, operating system, and web browser (with version numbers) you are using so I can attempt to get the layout working for your setup.

About the Redesign

If you visited this site prior to September 15th, 2018, you've no doubt noticed that I've since launched a complete redesign of the website.

If you're not happy with the new design, I sincerely apologize. I would have preferred to keep the old desktop design, but considering the majority of my site's users are now accessing the site from small-screen, touch-enabled, mobile devices, and considering Google is now penalizing websites for not being mobile/thumb friendly, I was left with no choice but to switch to a responsive, mobile-first design.

The good news is that now that I have combined the three separate versions of the site (mobile, desktop, and ad-free member) into a single design, this will free up a ton of my time for working to make the mobile-optimized calculators more desktop/laptop friendly. In fact, some of the redesigned calculators already offer a desktop-optimized form that becomes visible when you increase the width setting of the calculator (within the "Calculator Preferences" expandable panel).

Thank you in advance for your help and patience as I work to improve the redesign.

-Dan

Calculator Preferences
Roth IRA Conversion Calculator Sign

Roth IRA Conversion Calculator

This calculator will calculate and compare the net consequences of leaving an existing traditional IRA as is, versus converting it into a Roth IRA. Results include a side-by-side comparison of the two scenarios before, at, and during retirement, as well as a button for creating a printer friendly report.

Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Age now:Current age:Your current age:Your current age:

Your current age:

Enter the age you want to calculator to use as your age on the day of conversion.

Retire age:Age to retire:Age you plan to retire at:Age you plan to retire at:

Age you plan to retire at:

Enter the age you want the calculator to use for the age you will be when you start making withdrawals from your IRA (not before age 59-1/2).

Retire yrs:Retire years:Number of years to receive income:Number of years to receive income:

Number of years to receive income:

Enter the number of years you expect to make withdrawals from your IRA during retirement.

Pre-ROR:Pre-retire ROR:Pre-retirement rate of return:Pre-retirement rate of return on investments:

Pre-retirement rate of return on investments:

Enter the before-tax percentage you expect to earn on your investments between now and when you retire. Enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

Post-ROR:Post-retire ROR:Post-retirement rate of return:Post-retirement rate of return on investments:

Post-retirement rate of return on investments:

Enter the before-tax percentage you expect to earn on your investments during your retirement years. Enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

Fed tax:Current fed tax:Current federal income tax bracket:Current federal income tax bracket:

Current federal income tax bracket:

Enter your current tax bracket, typically 10, 15, 25, 28, 33, or 35). Enter as a percentage, but without the percent sign (for .15 or 15%, enter 15).

Retire tax:Retire tax rate:Federal retirement income tax bracket:Federal income tax bracket during retirement:

Federal income tax bracket during retirement:

Enter the tax bracket you expect to be in during retirement, typically 10, 15, 25, 28, 33, or 35). Enter as a percentage, but without the percent sign (for .15 or 15%, enter 15).

IRA balance:Current IRA bal:Current IRA balance:Current IRA balance:

Current IRA balance:

Enter the current balance of the standard IRA you are looking to convert to a Roth IRA. Enter as a dollar amount, but without the dollar sign and any commas.

Non-ded port:Non-deductible port:Non-deductible portion of current bal:Non-deductible portion of current balance (optional):

Non-deductible portion of current IRA balance (optional):

If any portion of your IRA contributions did not reduce your taxable income for the year they were contributed, enter that amount here. Enter as a dollar amount, but without the dollar sign and any commas. Otherwise, if all the contributions to your IRA were deductible, then leave this field blank.

Tax from:Tax paid from:Conversion tax will be paid from:Conversion tax will be paid from:

Conversion tax will be paid from:

When you convert your standard IRA to a Roth IRA, the portion of your IRA that is deductible will be added to your taxable income for the current year. This means you will need to come up with funds to pay taxes on that additional income. If you plan to pay the conversion taxes out of non-IRA assets (savings account, cash, etc.), choose non-IRA assets. If you plan to pay the taxes from your IRA (thereby reducing the value of your IRA) choose IRA proceeds.

At ConversionTraditional
IRA
Roth
IRA
DeductibleDeductibleDeductible portionDeductible portion:

Deductible portion:

This is the portion of the current balance that was deducted from your taxable income when you contributed it to the IRA.

Non-deductibleNon-deductibleNon-deductible portionNon-deductible portion:

Non-deductible portion:

This is the portion of the current balance that was not deducted from your taxable income when you contributed it to the IRA. In other words, you already paid federal taxes on this amount.

Forgone fundsForgone fundsForgone investment fundsForgone investment funds:

Forgone investment funds:

This is the amount used to pay the conversion taxes. This figure is used to calculate the amount of interest earnings you will give up by paying conversion taxes out of your savings rather than leaving that amount in savings to earn interest.

Conversion amtConversion amtConversion amountConversion amount:

Conversion amount:

This is the amount that will be converted to a Roth IRA. If you chose to pay the conversion taxes out of your IRA, then this amount will be reduced by the amount of the conversion taxes.

Conversion tax pdConversion tax pdConversion tax paidConversion tax paid:

Conversion tax paid:

If you chose to pay the conversion taxes out of your IRA, then this is the amount that will be subtracted from your IRA before it is converted to a Roth IRA.

Comparison balComparison balComparison balanceComparison balance:

Comparison balance:

These are the amounts that will be used to compare the net effect of converting from a Standard to a Roth IRA. If the standard portion shows more than the actual balance, that is because we are including the conversion tax savings that will occur if you keep your funds in the standard IRA.

From Now Until Retirement AgeTraditional
IRA
Roth
IRA
Deductible balDeductible balDeductible balanceDeductible balance:

Deductible balance:

This is the estimated future value of the deductible portion of your standard IRA.

Non-deductible balNon-deductible balNon-deductible balanceNon-deductible balance:

Non-deductible balance:

This is the estimated future value of the non-deductible portion of your standard IRA.

Forgone valueForgone valueForgone investment valueForgone investment value:

Forgone investment value:

This is the estimated future value of the investment that would otherwise be used to pay conversion taxes. If the amount is n/a, it means you chose to pay the conversion taxes out of your IRA.

Roth balanceRoth balanceRoth IRA balanceRoth IRA balance:

Roth IRA balance:

This is the estimated future value of your Roth IRA if you were to go ahead with the conversion.

Comparison FVComparison FVComparison future valueComparison future value:

Comparison future value:

This estimated future value of both scenarios for comparison purposes.

Income During RetirementIncome During RetirementDuring RetirementDuring RetirementTraditional
IRA
Roth
IRA
Annual deductibleAnnual deductibleAnnual deductible incomeAnnual deductible income:

Annual deductible income:

This is the estimated annual after-tax income that might be generated by the deductible portion of your traditional IRA during retirement.

Ann non-deductibleAnnual non-deductibleAnnual non-deductible incomeAnnual non-deductible income:

Annual non-deductible income:

This is the estimated annual after-tax income that might be generated by the non-deductible portion of your traditional IRA during retirement.

Annual investmentAnnual investmentAnnual investment incomeAnnual investment income:

Annual investment income:

This is the estimated annual after-tax income that might be generated by the conversion tax savings that would result from not converting your traditional IRA to a Roth IRA.

Annual Roth IRAAnnual Roth IRAAnnual Roth IRA incomeAnnual Roth IRA income:

Annual Roth IRA income:

This is the estimated annual after-tax income that might be generated by your Roth IRA.

Comparison TotalsTraditional
IRA
Roth
IRA
Annual after-tax incAnnual after-tax incTotal annual after-tax incomeTotal annual after-tax income:

Total annual after-tax income:

The left-hand column is the estimated annual after-tax income that might be generated by the combination of the deductible, non-deductible, and conversion tax savings related to keeping your traditional IRA as is.

The right hand column is the estimated annual after-tax income you might earn from your Roth IRA.

Mon after-tax incMonthly after-tax incTotal monthly after-tax incomeTotal monthly after-tax income:

Total monthly after-tax income:

The left-hand column is the estimated monthly after-tax income that might be generated by the combination of the deductible, non-deductible, and conversion tax savings related to keeping your traditional IRA as is.

The right hand column is the estimated monthly after-tax income you might earn from your Roth IRA.

If you would like to save the current entries to the secure database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Feedback AppreciatedFeedback Greatly AppreciatedYour Feedback Would Be Greatly AppreciatedYour Feedback Is Greatly Appreciated
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Tip

Help and Tools

Help and Tools:

This section, which you can Unstick or Hide in the Calculator Preferences (just above the top of the calculator), contains the following tabs (content too long to fit within bordered frame can be scrolled up and down):

About: Click this tab for an introduction to the calculator.

Instructions: Click this tab for step-by-step instructions for using the calculator.

Terms: Click this tab for a list of the descriptions that are located within each popup help button (info icons).

PCalc: Click this tab for a handy "pocket" calculator you can use when you need to calculate an entry needed for the calculator.

Data: Click this tab to save a set of entries or a note in between visits. Entries and notes will be stored to your web browser's local storage (if supported by your browser of choice), meaning they can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save entries and notes between devices you can do so by subscribing to the Ad-Free Member Version.

 

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